Abstract:

1) Objective:
Prepare a Business Canvas Model for KGVK, Ranchi & Analyze the business model of an Social
organization & various challenges that a social organization faces in terms of the 9 subparameters or 4 parameters of Business Canvas Model
2) Domain: NGO/Development Sector
Organization:
KGVK is promoted by and is an associate of Usha Martin Group. It is working towards
integrated sustainable development in rural areas of Jharkhand through convergent efforts of the
Government, Corporate bodies, NGOs, scientific institutes &beneficiaries since 1972. Since then
it has focused on transforming beneficiaries to producers, entrepreneurs and customers.
Vision-Mission-Goal:
At KGVK, it is an integrated approach that is driving the march towards sustainable rural
development. Since 2008, KGVK has implemented its proprietary Total Village Management
(TVM) to synergize development initiatives in rural Jharkhand.
Transforming beneficiaries to producers, Entrepreneurs & Consumers
3) Synopsis of Project:
To understand the business value of a social enterprise by understanding & preparing the
business model canvas of KGVK by understanding the various factors i.e. key partners, key
activities, key resources, value propositions, customer relationship, channels, customer segments,
cost structure & revenue streams.
4) Methodology:
The methodology includes primary data collection & secondary data analysis.
Secondary Data Analysis:
The methodology will be through thorough analysis of the Annual reports of KGVK.
Primary Data Collection:
Our research design is interview one with cross-sectional data collection & employee & RLLE
insights. One employee from each level of organization structure will be interviewed.
Tools & Techniques:
Canevizer Software, Employee Insights (Interviewing Employees at each hierarchical level) & if
possible we will be doing the fish bone analysis for the problems faced by the organization from
customers side.
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Executive Summary:
Our objective of the project is mainly to know the integrated approach model which is
undertaken by KGVK and to do a thorough analysis of the model and then preparing a business
model canvas of KGVK by understanding the various factors: key partners, key activities, key
resources, value propositions, customer relationship, channels, customer segments, cost structure
and revenue streams.
The model followed by KGVK is TVM model. The fundamental edifice of TVM is igniting
initiatives at the grass root level through: Public, Private, People & Partnership; the P4 approach.
Over the years, P4 has come to define an approach that increases community ownership,
promotes participations, and encourages collaboration among various stake holders which at
various times may include government agencies, corporate entities, worldwide NGOs, scientific
institutions and financial establishments.
KGVK has started recently updating all the data to online databases & used the reports generated
from this to get link with Axis bank Financial Limited to create the transacting bank accounts
for all farmers. The aim of the project would also be to know how the IS is helping in
implementation of the above project along with Jan Dhan Yojona project.
The framework we have followed is analysis of the business model & finding challenges &
giving some recommendations.

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Table of Contents
Abstract:........................................................................................................................ 1
Executive Summary:......................................................................................................... 2
1)

Introduction:........................................................................................................... 4

2)

Objective:............................................................................................................... 5

3)

Methodology:.......................................................................................................... 6

4)

BUSINESS MODEL CANVAS:.................................................................................... 6

5)

Key Partners:.......................................................................................................... 7

6)

Key Resources:........................................................................................................ 8

7)

Key Activities:......................................................................................................... 9

8)

Customer Relationships:.......................................................................................... 12

9)

Customer Segments:............................................................................................... 15

10)

Channels:.......................................................................................................... 18

11)

Value Propositions:.............................................................................................. 20

12)

Costs Inherent in Business Model:..........................................................................22

13)

Revenue Streams:................................................................................................. 24

14)

TVM Model Analysis:........................................................................................... 26

15)

Primary Data Collection:........................................................................................ 27

A)

Dr. Arvind Sahay (Hierarchical Level: Change Maker):...............................................27

B)

Mr. Saurabh Kumar (Hierarchical Level: Project Change Maker)...................................28

C)

Mr. Jageswar Mehto (Hierarchical Level: Field Change Maker).....................................29

D)

Mrs. Rita Devi (Hierarchical Level: Rural Service Provider).........................................30

16)

Secondary Data Analysis........................................................................................ 30

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1) Introduction:
About the Organization:
History:
Our RLLE organization was KGVK (Krishi Gram Vikas Kendra) which is a NGO working in
Jharkhand. KGVK is promoted by and is an associate of Usha Martin Group. It is working
towards integrated sustainable development in rural areas of Jharkhand through convergent
efforts of the Government, Corporate bodies, NGOs, scientific institutes &beneficiaries since
1972. Since then it has focused on transforming beneficiaries to producers, entrepreneurs and
customers.
Vision-Mission-Goal:
A COMMUNITY THAT'S GREATER THAN THE SUM OF ITS PARTS - SYNERGY IS
THE MEANS TO THAT IDEAL.
At KGVK, it is an integrated approach that is driving the march towards sustainable rural
development. Since 2008, KGVK has implemented its proprietary Total Village Management
(TVM) to synergise development initiatives in rural Jharkhand.
Ably supported by its corporate anchor Usha Martin Limited, KGVK has successfully
established an ecosystem that is built to sustain itself, drawing from the ability, knowledge
and skills of the people who make the community.
Transforming beneficiaries to producers, Entrepreneurs & Consumers
Programme/Project/Target Group:
The core objective of the intervention is to:
Increase the income of 50,000 farmers by 50% within 5 years in Ranchi & ramgarh Districts
of Jharkhand
The intervention Programme designed is looking in to the fact that Paddy is the primary crop
cultivated in the area of intervention. The income can only be increased either by converting
them to Commercial crops or by increasing theyield. Thus the SRI method of paddy
cultivation was selected to be promoted.
This is the third year they have reached a number 12,000 farmers practicing SRI cultivation
with KGVK. The farmers approached by them are Marginal & Small farmers. This
intervention by KGVK illustrates how a sectoral approach, helps to enhance the livelihoods
& income of poor & vulnerable farmers of the society.
They have 8 pillars and accordingly are running various projects i.e. IWMP implementations
in 4 blocks i.e. Ormanjhi, Patratu, Budmu & Namkon.
The other projects & programmes are related to women empowerment, capacity building,
skill development & other pillars of their Total village Development model.

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Internal System & Methods;

KGVK has a classified set of formal organizational structure in which they work. Unlike
every organization the management is divided into top, middle and lower. At the top level
management there are generally 5-6 members who are called Board Change Maker. Their
function is to direct the future course of action to the lower staff. In the next level there is
Central Change Maker consist of 3-4 members whose work is to devise the plan.
In the middle level management the action work is done by the Project Change Maker. Below
this level, a Field Level Change maker performs who acts as a Coordinator and Supervisor of
a given area. Their job is to coordinate with the lowest level of management and ensure that
the plan is executed properly.
At the lowest level, the work is done through Rural Service Provider (RSP). Under each RSP
there are minimum 50 farmers. The RSP also provides them with seeds, weeder and nursing
facility. Also it is the most trusted position as the RSP is from the same village. Every village
has a RSP who is supposed to execute the plan at the village level.

Target Setting
Devises Plan
Supervises Implemnetation
Project leader
Implements the Project at Field level
Community Person

Central
Change
Maker
Project
Change
Maker
Field
Change
Maker
Rural
Service
Provider

KGVK has started the project 3 year back but is recently updating all the data to online
databases & used the reports generated from this to get a link with Axis bank financial
Limited to create the transacting bank accounts of all the farmers intervened under Jan
Dhan Yojana. The aim of the project would be how the IS is helping in implementation of the
above project along with JDY project & also the project they have recently completed with
State Government on IWMP (Integrated Water Management Programme).

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2) Objective:
To understand the Business value of a social enterprise which is KGVK an NGO in the
Development Sector by understanding & preparing the business canvas model
3) Methodology:
Analysis of the annual report of KGVK
Interview of Board Change Maker to Field Change Maker
RLLE Insights
Canevizer.com to create Business model canvas, Employee Insights
4) BUSINESS MODEL CANVAS:
A business model describes how a company creates an offering, gets it to customers and
generates profit from the transaction. It offers a simple, visual, one page canvas on which
we can design, innovate and dialogue about our business model. The research of Alex
Osterwalder and Yves Pigneur suggests that a complete description of a companys
business model can be broken down into nine elements:
What:
1. Value proposition: A clear description of the companys offering and how it solves
problems or creates value for customers.
Who:
2. Customer segments: The specific group of people that the organization aims to
serve.
3. Channels: The means that a company uses to reach its customer segments to
communicate with them and to deliver products and services to them.
4. Customer relationships: The methods used to maintain relationships with customer
segments.
How:
5. Key resources: The most important assets that the company needs to make the other
elements of the business model work.
6. Key activities: The most important things that a company must do to make its
business model work.
7. Key partnerships: The network of suppliers and partners that make the business
model work.
How much:
8. Cost structure: The major costs that need to be incurred to sustain the business
model.
9. Revenue streams: The income generation and collection mechanisms in the business.
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These nine business model building blocks can be captured in a single diagram called the
business model canvas. It sets the value proposition at the center of the business model as
the primary focus area. The customer building blocks (customer segments, channels and
relationships) can be found to the right of the value proposition and infrastructure
building blocks (resources, activities and partners) to the left. The finance-based building
blocks (revenue and cost structure) can be found on the lower portion of the diagram:
5) Key Partners:
1) Who are our key partners?
KGVK has activity based partners & strategic partners. The strategic partners are as follows:
1)
2)
3)
4)
5)
6)

Usha Martin Limited

Oxfam
Austrian Development agency
Department of rural development, government of Jharkhand
Department of rural development, government of India
The community

2) Who are our key suppliers?

Suppliers are very crucial & the supplier ensures quality & at the end which ensures
success of your projects. The key suppliers of KGVK are as follows:
KGVK Agro Ltd.
Local suppliers
TERI
TPW Energy conservative
3) Which key resources are we acquiring from partners?

Physical: transparent roof sheet, solar lights, agri-equipments etc.

Financial: Fund
Human: member staffs
Intellectual: Strategies, Technical support

4) Which key activities do our partners perform?

Providing Resources
Support System

5) Motivation for Partners:

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Social Welfare
Our Past Records

6) Key Resources:
Key resources are the tangible or intangible assets that drives KGVK Total quality
Management model. Decisions need to be made within whether these resources are need
within the organization or whether key partnership can be developed to ensure that these
resources are accessible for the organization.

These are the key resources KGVK requires for providing value proposition to its customers:

Water, forests, land, animals and People

Govt. Support
People support
Other Organization support e.g. MESA, ICEMR, Life spring Hospitals
Comprehensive audit set up to measure performance and accountability.
State of the Art research laboratory
Financial by World bank

7) Key Activities:

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KGVK follows the model of 8 pillars and mainly focuses on TVM(Total Village
Management) model, the following are the 8 pillars:
1) Natural Resource Management- KGVK primarily focuses on preserving natural resources
like water which can be used for irrigation, agriculture and loads of other proper
activities. In this they are partnered by the community itself who work day in and out and
extend their full cooperation, the department of rural development, Government of
Jharkhand, Oxfam and Austrian Development Agency
2) Resource Mobilization and Infrastructure Development- KGVK has collaborated with a
host of institutions to introduce and implement new measures for sustainable
development in Jharkhand. Association and affiliation for knowledge exchange,
enhancement of skills, and for financial partnerships have been the key to growth and
welfare in the villages. KGVK also has taken initiatives in infrastructure development by
building bore wells n tube wells for the benefit of the villagers
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3) Womens Empowerment- The main partners in Women empowerment are the community
and the Usha Martin Group Limited. The process that is quite popular here and in the
spotlight is the Samasya Samadhan Samuh(Quality Circle), where the problems get
discussed and probably solved on most of the occasions. They are also further assisted by
Self Help Groups(SHGs). Self-reliant and empowered women are invaluable assets in the
success of development initiatives. Providing them with employment opportunities is one
of the most effective ways to address the issue of rural poverty. Under TVM, KGVK has
formalised a system of interventions to help communities of women pool their collective
wisdom, abilities, and resources to bring a social transformation in their villages
4) Energy Inclusion- At last count, 800 million people in India used traditional fuels wood,
agricultural waste, and biomass cakes to fulfil their energy needs on a
daily basis.
Inefficient sources of energy, these fuels are also a major cause of respiratory illnesses.
And because the burning of these fuels releases a large amount of pollutants in the air, the
damage done to forests, ecosystems and the local as well as global climate cannot be
ignored. Jharkhand is also one of the states most dependent on traditional fuel. In 2011, it
was revealed, in the parliament no less, that only 4000 out of the 32,615 villages in
Jharkhand
had electric supply a situation that continues to prevail after two years. It is in this
context, that KGVKs attempt to mitigate the problem by means of alternative energy,
gains significance. The Energy Inclusion pillar of TVM features a host of innovative
measures transparent roofing sheets, solar lanterns, solar charging stations, etc., to name
a few designed to help villagers in remote areas of Jharkhand gain access to light,
thereby easing the way towards a more comfortable, productive, and healthy lifestyle
5) Capacity Building- The best thing to be mentioned here is that NABARD is one of the
key partners here. From the beginning, KGVK has established Capacity Building
measures as the foundation of its development initiatives in Jharkhand. The approach
stems from the idea that knowledge transfer and skill development is the only way to
sustain progress. Identifying potential, and then realising it, is a key aspect of this
process. Through systematic training and an integrated approach towards sustainable
development, KGVK in partnership with various government agencies, has empowered
communities in the region, amplifying opportunities right at the bottom of the pyramid.
6) Education- Knowledge is the most powerful currency in the world today. At KGVK, as
part of the TVM model, we have developed a programme called Total Education
Management (TEM). The programme has a one-point agenda to improve the quality of
education from the pre-primary levels right up to Adult education.
7) Health, Nutrition and Sanitation- The future of a community is intrinsically connected

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to the prevailing health of the people who constitute it. Feeble-bodied men,
undernourished youth and weary women do not make a social revolution nor do they
inspire much hope in the quest for sustainable development. Precisely the reason why,
KGVK has placed the greatest emphasis on ensuring that the people of rural Jharkhand
have access to the best possible medical care, the requisite nutrition essential for a
healthy childhood, and living conditions that are hygienic and free from disease. Quite
early in our attempts to improve the health, nutrition, and sanitary conditions in villages
that came under the KGVK area of operations, we realised the need to collaborate with
government agencies to carry out remedial measures swiftly and effectively. The
resources at the disposal of these organisations, and our expertise, when combined could
become a force for positive changes.
8) TVM Gurukul- Established in 2006 as a grassroots Knowledge Management Hub in
Rukka, TVM Gurukul has today emerged as a cornerstone of KGVKs Capacity Building
measures. The training sessions have become a Petri dish of innovative ideas, with the
process of democratisation gaining a firm hold. The institution serves to expand and
consolidate improved practices, disseminate knowledge, augment skills, enhance
entrepreneurial opportunities, and generate social inclusiveness for the people.
The key activities include:

Exposure visits for more than 1000 farmers

Hosted programmes by various development agencies
Training sessions for fellows of Rajiv Gandhi Fellowship Scheme.

1) What key activities do our value propositions require?

Partcipation from community.
2) Our Distribution Channel?
Own
3) Customer Relationships?
Participative & Technical Support
8) Customer Relationships:
KGVK tries to maintain its customer relationships through various means and approaches
which are adopted by it:
Social Return on Interventions: Social Return on Interventions (SROI) is a unique
model, in that it places utmost importance on stakeholders' involvement, a feature that
sets it apart from conventional cost - benefit analysis. The impact of interventions is
measured not only in monetary terms but also in social and environmental outcomes.

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The process of Social Return on Interventions (SROI) involves the community as they
help us understand the kind of impact that our interventions are creating. KGVK is
presently measuring impacts across the verticals of Natural Resource Management
(NRM). For instance, Systematic Root Intensification (SRI) has shown nearly 50%
increase in acreage and doubling of output compared to traditional method of
cropping.
For income generation, activities have been measured across the verticals
in livelihood through in-depth interviews, household surveys, Focus Group Discussions
and sampling methods. The first Social Return on Interventions (SROI) report was
generated in 2012 for 21 TVM villages across 5 key interventions, and this has helped the
organisation to understand gaps and address them in a focused manner.
Systematic Root Intensification: Cultivation of paddy by means of Systematic Root
Intensification (SRI) a departure from the traditional approach has found wide
acceptance amongst the community in KGVKs area of operation. An elaborate yet
simple to apply process, SRI cultivation involves the following six aspects: Land
preparation Seedling preparation Innovative transplantation Intermittent irrigation
Rotary weeding Organic fertilisation.
Many farmers were supplied with high-quality seeds and the Krishi Usha Weeder to
facilitate the process of adapting to a new way of agriculture. Highly scientific in
approach, SRI has been designed to maximise yield while consuming a bare minimum of
resources. As a means towards generating more income and enabling greater savings, SRI
has no parallel. The following is the story in numbers, depicting the amount of ground
covered as KGVK endeavoured to help the farming community of Jharkhand embrace
SRI methods of paddy cultivation.
Adult literacy classes: The Aao padhe aage badhe adult education initiative undertaken
by KGVK aims to serve adult women in the community who havent had the benefit of
formal education in their formative years. The objective is to ensure that by the time of
completion of the programme the women should learn to identify, read, and write the
Hindi alphabet, make words and sentences, and be able to write their names and sign
when required. Monitored by KGVK personnel at every stage, the programme involves
the following basic framework:

Different opportunities within every sector:

Mannerisms

Basic training on hygiene practices, computers, English

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Tips on grooming

Experience visits to different hotels in the city upon completion of the programme in the
first phase, 33 out of the 45 students were placed in various rated hotels in the region. In
the second phase, 100% placement was achieved with the students finding employment
with medical institutions and hotels.
Capacity building of Panchayat Representatives: From the beginning, KGVK has
established Capacity Building measures as the foundation of its development initiatives
in Jharkhand. The approach stems from the idea that knowledge transfer and skill
development is the only way to sustain progress. Identifying potential, and then realising
it, is a key aspect of this process. Through systematic training and an integrated approach
towards sustainable development, KGVK in partnership with various government
agencies, has empowered communities in the region, amplifying opportunities right at the
bottom of the pyramid.
Village health nutrition day: The Village Health, Sanitation and Nutrition Committee
(VHSNC) is an agency set up by the government to monitor and address health and
hygiene-related issues in villages. KGVK Health team reviewed the government modules
for VHSNC and found that the biggest challenge was to motivate them for monthly
meetings and healthcare monitoring mechanism. KGVK decided to train them as per the
government guidelines and create an effective monitoring tool Village Health
Dashboard so that VHSNC may get all the information from one source instead of a
cumbersome reporting structure. The training modules covered topics such as rural health
problems, public health delivery structure, public health programmes and functioning,
health and information rights of the people, and the role of VHSNC. The training
programme a pilot project -- comprised of the following key steps: KGVK appointed
five village Sparks, one for each cluster
Post-training at KGVK, the Sparks compiled basic data about their areas of operation
The data collected was shared with members of the VHSNC over a half-day orientation
session
The project revealed that VHSNC functioning could be improved significantly through
training and mentoring, especially if there is active facilitation from the government in
terms of resolving implementation problems as and when identified. For example, the
communitys interaction with KGVK facilitators had revealed that VHSNC formation via
a government order had resulted in some unwilling members getting in and some active
community members being left out from VHSNC. To resolve this issue, the government
issued an order allowing district health officers to add active community members to
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VHSNC after taking consent of the existing members. This order also permitted the
unwilling members to withdraw from VHSNC if they so desired. Responding to the
communitys long standing grievance of community members not holding any
responsible positions in the VHSNC, the government instituted another change by which
only community members could preside in all VHSNC meetings and they would also be
one of the signatories to the bank accounts, along with the ASHA or ANM. This Order
was seen as a step in the right direction by community members in involving them in the
VHSNC functioning.
Total Education management: The programme has a one-point agenda to improve the
quality of education from the pre-primary levels right up to Adult Education. Initially
implemented in 3 villages, the programme has now been embraced by communities
across the region through model schools
The TEM programme aims to develop a framework for education that covers every stage
in the life cycle. It features modules that have been tailor-made to meet the needs of the
various age-groups. To make the system work and to ensure maximum impact, educators
and teachers are also trained in modern tools of learning, ensuring efficient and impactful
knowledge assimilation.
Farm based intervention: To help people sustain economic gains in the long run and to
address this, KGVK and Axis Bank Foundation joined hands to promote sustainable
livelihood in different project areas of Jharkhand. The programme aimed at enhancing the
income of the households by at least 50% through different income generating activities
and providing financial inclusion to the community stakeholders at the end of the project.
A choice of livelihood options in a basket of different interventions under Farm, Off
Farm, Non-Farm / Skill based sectors was made available to the community. The project
aimed at supporting 52,650 households in its intervention areas. Along with this,
emphasis was laid on strengthening of Village level institutions, i.e., Self-help groups
through various capacity building programmes and livelihood activities.
Community participation: Impact measurement and community participation are two
key aspects of TVM. Every initiative is implemented by means of an 80:20 model where
80% of the workforce is derived from within the community and 20% is made up by
KGVK personnel

9) Customer Segments:
KGVK specially works in the field of development in rural area. Where, it targets
different group of people of age group.
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There are basically three segments as follows;

Children:KGVK has targets rural children in order to give them fundamental education. It runs
schools (Anganwadi centers) in different villages. Where children can easily attend the
classes as schools are in villages itself. Parents have no issues sending their children to
nearby schools. These schools help parents not to bring and drop their children for the
school every day. Children can go to school and come back by themselves.
In this anganwadi centers children age group of 1-5. To make up for a lack of play kits in
these centre, KGVK arranged for these items to be made available to the children, as a
tool to motivate them and increase attendance. The play kits helped improve gross and
fine motor skills, listening and speaking skills and also enhanced the cognitive & noncognitive skills of the children.
To extend the knowledge-base, teachers from KGVK Gurukul visited the centre and
shared information with the Sahiyas and Sevikas on how to make effective use of the play
kits and learning aids. Activity based classes like story telling sessions and action song,
drawing & coloring classes were also initiated to develop observation power, and inspire
creativity in the young children.
Youth:From the beginning, KGVK has established Capacity Building measures as the
foundation of its development initiatives in Jharkhand. There are number of programs for
the youth, like knowledge transfer and skill development program. Conducting these
programs is to go for sustainable development. This is the reason it targets the bottom of
the pyramid.
This skill development programs includes;
1.
2.
3.
4.
5.
6.
7.

Solar lantern repair work shop for boys

Football academy for girls
Mobile repair course for boys
Spoken English course for girls and boys
Tailoring course for girls
Hand pump operator
Carpentry

Adults:-

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As far as adults customers of KGVK are concerned, they also share good number of
share in the organization. The customers of KGVK are involved in different activities and
programs run by the organization. They are as follows;
1. Making incense stick for women
2. Interns in the organization for different institutions for research students
3. Handicraft making
4. Mushroom making
5. learning appliqu work
6. Duck Rearing
7. Vegetable cultivation
8. Goat Rearing
9. Apiculture
10. Pig Rearing
11. Kantha Embroidery, Artificial Jewelery
12. Hospitality Management
13. Smokeless chulha making
KGVK produces number products through different SHGs and its associates. These
products are follows;
Agriculture machines like

Weeder- For paddy and dry land

Drum seeder For paddy
Line maker- It helps to maintain the distance between two plants
Paddy thresher
Maize Sheller, etc.

Agriculture seeds/fertilizer like

Paddy
Maize
Vegetable seeds
Fertilizer, etc.

As above mentioned all the agriculture related equipments are produced by KGVK. So
KGVK covers farmers segments as customers of its products.
Who are the value creators of KGVK?
There are numbers of people involved in value creation for the organization. Basically
their boards of governors who create value in participating different conference like CII
of India. There are numbers of employees in the organization; they also play a vital role
Page | 16

in creating value for organization. Their behavior with customers and the way they
handle the situation, it does create value. KGVK has different branches of development in
the rural area like education, sanitation, health, skill development, women empowerment
etc. So these are the factors, which create value for the organization among the
beneficiaries as well as in the society. As far as agriculture is concerned, its all products
are very useful in the village farmers, weather it is equipments or seeds or different
crops.
Value creation is a collective effort from both the sides, organization side, which
produces the products, as well as customers side, who consumes the product and give
feedback in terms of word of mouth in the peer groups and in the society.
For whom are we creating value?
It is very obvious that every organization has its own motive to give services in any field.
As KGVK targets villagers, it is necessary create value for them so that they can believe
in organization. It is possible only through good services to the society who are
underprivileged. By doing these, the organization creates or gets created its own value
among the society.
Who are our most important customers?
There are different customer group in the in the market like Mass market, Niche market,
Segmented etc.
Mass Market
The mass market is the group of end consumers, who occupy the overwhelming mass of a
bell curve for common household products, i.e., they could be tagged as being "average".
Yet, this group consists of such a wide variety of people; their desires towards a certain
product may be totally different from each other. Often competition to supply the large
market is fierce but relatively easy to enter because of the mass amount of Consumer
Park available.
Niche Market
A niche market is the subset of the market on which a specific product is focused. The
market niche defines the product features aimed at satisfying specific market needs, as
well as the price range, production quality and the demographics that is intended to
impact. It is also a small market segment. For example, specific markets like seeds,
agriculture equipments, fertilizer, etc target a niche market of farmers.

Segmented
Page | 17

Segmented market is a marketing strategy that involves dividing a broad target

market into subsets of consumers, businesses, or countries that have common needs and
priorities, and then designing and implementing strategies to target them. Market
segmentation strategies may be used to identify the target customers, and provide
supporting data for positioning to achieve a marketing plan objective.
In the context of KGVK, segmented market is very important as we have already
discussed about the market types.
Challenges
There are lots of challenges in implementing the plans in the remote villages, where
people do not accept new things easily.
There are difficulties like;

Teaching small children in the village

Changing their attitude of not going school
Conducting skill development program in the village without electricity
Selling modern agriculture equipment People are rigid, they do not want to
change their traditional cultivation methods or equipments
Less number of participants in the vocational programs
Competitors of KGVK in the field of seeds, fertilizers, and agriculture
equipments

10) Channels:
CommCare Dimagi: CommCare Dimagi is an open-source mobile health platform
designed for data collection, client management, decision support, and behaviour
change communication. CommCare consists of two main technology components:
CommCare Mobile and CommCareHQ. The mobile application is used by clientfacing community health workers in visits as a data collection and educational tool
and includes optional audio, image, and video prompts. Users access the applicationbuilding platform through the websiteCommCareHQ which Dimagi operates on a
cloud-based server.
CommCare supports J2ME feature phones, Android phones, and Android tablets and
can capture photos and GPS readings. CommCare supports multi-languages and nonroman character scripts as well as the integration of multimedia (image, audio, and
video).CommCare mobile versions allow applications to run offline and collected
data can be transmitted to CommCareHQ when wireless (GPRS) or Internet (WI-FI)
connectivity becomes available.
Page | 18

Samasya Samadhan Samuh: one of the very first measures undertaken by KGVK in the
region was to develop a system of Quality Circles. People of the community were
encouraged to work in teams and collectively arrive at best possible solutions that would be
of benefit to the entire community.
Over the years, the idea of Quality Circles has evolved. Now known as Samasya Samadhan
Samuh (Problem Solving Group), it is being effectively used to identify problems and
implement interventions in a timely, efficient, and effective fashion by the people
themselves. Community ownership has indeed come to define the unique model of
sustainable development that KGVK has propagated through TVM.
KGVK Shalini Hospitals: The Shalini Hospital Network established its first hospital at
village Rukka in the year 1988 to provide referral and primary services to the villages
around. Since then, another hospital has been added under the Shalini Network to provide
access to over 150 villages.
Over the last two decades Shalini Hospitals have carried out more than 13,000 successful
deliveries, around 1,500 cataract operations, and has annual footfall of more than 12,000
patients. A well trained team of 50 health professionals are working towards delivering
quality health services to patients who walk into our hospitals at Rukka and Narayan Soso
every day.
Best practices in the hospital combined with our public health experts, auxiliary nursing
midwives (ANM) and well-trained cadre of community health workers help address
healthcare issues in an effective and comprehensive manner. Some of the partners include the
Government of Jharkhand (GoJ), LifeSpring Hospitals, University of Washington and
independent healthcare professionals.
Vocational Training School: Vocational Training School has been established with a vision
to discover individuals from the local communities who can be groomed to become the
agents of change. To make any development process sustainable, it is imperative to find and
train individuals from the local communities who can then be groomed to become the agents
of change. KGVK has always believed that leaders and entrepreneurs from the bottom of the
pyramid must be trained continuously so that people from the grassroots are empowered and
become self-reliant.
However, the imparting of skills to members of the local communities and identification of
their inherent abilities and resourcefulness is a task fraught with logistical and infrastructural
challenges. TVM Gurukul is a step towards taking on those challenges with a clear focus on
enabling and empowering capable individuals to take charge of their own development.

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KGVK operates a vocational training school with structured courses on community paraprofessionals in healthcare, water harvesting, agriculture and animal husbandry that help take
the TVM programme forward into the villages. Apart from this, it also provides NIOScertified courses in rural development, technology in development, etc.
To help rural youth grab the opportunities in the hospitality industry in the region, a new
course in hospitality management has just begun with a plan to expand to other areas like
retail, sales & marketing and customer service. These programmes are supported by Axis
Bank Foundation and Austrian Development Corporation, with guest faculty from
organisations in and around Ranchi.
Self-help groups: To conduct all its activities and implement in the village KGVK takes help
of the village self-help group to ensure community participation in every activity and also to
assess the villagers on different parameters after training is imparted to them.
TVM Gurukul: The Gurukul Schools are the learning lab for practicing the Total Education
Management (TEM) integrated education model promoted by KGVK.
The TEM approach provides a child a very holistic curriculum, well-structured training &
learning materials, labs with high speed broadband, LED TV and laptops, and a continuous
learning environment. Some of our funding and knowledge partners include the World Bank,
CfBT Advisory Services and independent education experts. Learning from the schools help
our our highly competent staff engage with Government schools, in improving the schools
holistically.
Dairy Farms: The in-house dairy shed has 100 cows and experienced staff to manage them.
Best practices in livestock management, feed management, shed management, etc are being
practiced by an experienced set of dairy professionals. These practices are then taken to the
community through the formation of milk associations, along with services like AI, feed,
para-veterinary and advisory services.
Each of these farmers is exposed to our demo farm and allowed to interact with our
professionals, thus giving them the confidence to take best practices back to the village. The
training provided to small dairy farmers helps them meet the benchmarks of excellence in
dairy management.
11) Value Propositions:
At KGVK, it is an integrated approach thats driving the march towards sustainable rural
development and with its Total Value Management the value it delivers to the customers are:

Confidence to explore new opportunities

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Productivity enhancement of the village produce

Grassroots intermediary support mechanism
Meaningful contribution towards safeguarding the future of my community as a Sahiya
(Health facilitator in village)
More comfortable, productive, and healthy lifestyle.
Women Empowerment: Achieve economic and social self-reliance, awareness about rights,
active participation of women in development activities
Knowledge transfer and skill development

These values delivered to the customers aims to solve the benefit people in terms of:

Man days employment generated

Drinking water facilities
Water conservation
Health care services
Means of alternative energy
Allows children to study after sundown
Education facilities
Employment opportunities to Women
Inclusiveness for the people.
To expand and consolidate improved practices, disseminate knowledge, augment skills,
enhance entrepreneurial opportunities, and generate social

Bundles of products and services are KGVK offers to help solve these problems:

Health Camps
Insect control measures
Village Health, Sanitation and Nutrition Committee (VHSNC) for health, nutrition, and
sanitary conditions
Energy Inclusion pillar
Solar micro-grid Power Plant
Solar Charging Stations
Transparent Roofing Sheets
Total Education Management (TEM).
Adult Literacy classes
Vocational courses
School Management Committee (SMC) Training
Different interventions under Farm, Off Farm, Non-Farm / Skill based sectors
SHG for Women Employment
Capacity Building Programmes (TVM Gurukul)
Start Towards English Proficiency STEP
12) Costs Inherent in Business Model:
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1)What are the most Important Costs inherent in our Business model?
Cost of Employment:
KGVK has a policy of hiring a person from community from every village as Rural Service
Provider & similarly Animators, Health workers etc.
Cost of Technology
The business is heavily dependent on technology, as its important part is to give vocational
training to farmers & youth the new technological farming practices & all the new interventions
through computer education for which it has big buses with 10 computers fit in to it & 5 persons
in to the buses to teach the villagers. It makes the community persons at par with the
technological advancement.
Cost of adhering to Government regulations and policies
KGVK being registered under the Societies Act & KGVK Agro Ltd being registered under
Companies Act & also being the part of CSR activities of Usha Martin Limited, it had to adhere
to certain government laws & policies.
Cost of Dairy Development Expenses:
KGVK has established a Dairy plant with an capacity of around 80,000 Litres/Day & it has to
incur the costs related to procurement, processing, packaging & distribution. The dairy plant has
been increased from its previous capacity of 15,000 Litres/day.
Cost of Village Agriculture & other Product:
KGVK has to bear the cost of production of USHA Agricultural Implements & the seeds
production. Also the other input products given to villagers like for example Smokeless Chula,
Transparent Roof Sheet, Solar Light & various other products under various key activities of
Total Village Management(TVM) Model.
Cost of Training Programme & Education Activities:t major cost activity is also training villagers
for various activities like veterinary services, capacity building, skill development, women
empowerment & other key activities undertaken like demonstration of On-Farm, Off Farm &
Non-Farm Activities.
Cost of Community & Health Centre Programme:
One of the major costs under this section is running of Shalini Hospital. The Shalini Hospital are
the medical services being provided to the community persons at very cheaper rate in dorr steps
maintain the best quality possible.
Cost of Village Development & other Activity Expenses:
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The major costs also include activities related to village development through SRI promotion i.e.
providing livelihood opportunities to individual farmers, Natural Resource Management (i.e.
Water, Forest, Land, Individual, Cattles (Animals)).
Cost of Administrative & other Expense:
These expenses include 20% of the total expenses & cannot exceed from 20% as most its
expenditures comes from donor agencies & they have to abide by the rules of the donor agencies.
2) Which key resources are most expensive?
All the fixed assets created are most expensive i.e. Buildings, Machineries, Plants, Livestocks,
Land, Vehicles, Mobile Communication & Training, Hospital, Ambulance etc.
3) Which key activities are most expensive?
Out of all the key activities undertaken the activities related to Community & Health Centre
Programme are the most expensive ones.
4) Is your business more Value driven/Cost Driven?
The company has a lean cost structure as it facilitates in various activities for the improvement of
the community. The business is Value Driven, is mainly driven through the values they want to
transfer to the community & wanted community to believe upon. As the majority of the activities
are for the empowerment of community people, the source of revenue being donor agency, the
business is value driven & the donor agency too gives the money with relatedness to the same.
Challenges:

In containing costs respect to such a holistic approach of activities.

Optimal utilization of resources as resources are limited (i.e. both fund & manpower)
Administrative costs have to be limited to 20% is a big challenge as Donor Agency keeps
this benchmark.
Monitoring & Evaluation is also a challenge manually thus recently 11 months we have
shifted to automatic accounting system & keeping data of the project also through
software named CommCareHO.

13) Revenue Streams:

1. Value Customers are willing to pay for:
The value for which customers are willing to pay is better life expectancies, productivity
enhancements & technical support. The tag line of KGVK is Raising Hopes & Realising
Dreams. This is what for which customers are actually willing to pay as KGVK raises hopes &
helps to realise dreams i.e. make it possible for dream to come true.
2. Value customers are currently paying for:
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Customers currently pay for dedication, their technical support, field work, valuing communitys
ideas, helping in identifying skills & for the ease of service and luxury.. Hence, the customers
currently are paying for valued customer experience.
3. Payment method
The payments method through which the individual of the community generally pay to the
organisation are as follows:
Cash: For certain products like Agricultural Implements & Seeds & other Inputs. Similarly for
certain other products which are being provided to individual in subsidized rate of almost 90%
rest 10% just to create a sense of ownership among them.
Kind: They also pay in kind in terms of free labour work or providing some key resources or
arranging them or helping in arranging them.
Time: The second way in which the community personnel are paying to KGVK is through the
time they spend in training & supporting activities after believing in the organisation.
Implementation: They also pay in terms of actual implementation of the training activities in
the field making the projects successful & ultimately allowing the release of funds from the
Donor Agencies.
The second type of customers set are the donor agencies & the Usha Martin limited for which it
does the CSR activities. These customers directly pay in Cash in phases as the progress of
projects.
The third type of customers set is the Research Organisations they pay by providing reports after
collection & analysis of data.
4. Customers preference for payment
Among the current methods of payment the customers preference is to see immediate results
by implementation of trainings provided or the new technological interventions made to them.
The focus is mainly on Result part where as in most of the cases the results to be seen are not
immediate & time taking with cascading effects.
5.Pricing
The pricing of certain products sold are @ 90 % subsidized rate & the balance 10% amount
collected is again used for community development activities for the particular community from
where the amount was collected. The reason of collecting 10% amount is that anything for free
doesnt pass on the sense of ownership which is most crucial value to be created for success of
all other activities.
6. Dynamic Pricing
It is 10% of total expenditure for product. Thus the price varies as per the products. All the
services provided except the TVM Gurukul is free of Cost. The TVM Gurukul charges minimal
amount so that the trainings are being valued.
7.Customer Reaction to dynamic pricing

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The customers are sometime reluctant to pay the same & need to be convinced by explaining the
benefits of the same by explaining them that the 10% of the amount is used for development of
their community itself.
8.Strategy to compete against the Government & other NGOs
The strategy to tackle competition from the government & other NGOs is partnership with them
for various activities for example with Department of rural Development, Jharkhand for IWMP
project.
9.Revenue
As per data collected from 2013-14 annual report we found the contribution from various
revenue streams as follows:

Sale of Products (Seeds, Farm Equipments, Dairy Products) by KGVK Agro

Ltd - 11%

Training Programme & Education Activity - 15 %

Community & Health Centre Programme - 21%

Contribution from Donors - 52%

Other Incomes - 1%
10.Challenges:

Donor Agency restrictions because of accountability issues.

52% of our sources are Donor Agency i.e. High Dependency on Donor Agencies, Out of
52% 30% is from Usha Martin Limited.
In case of Govt. Projects the problems are also related to delay in fund transfer thus delay
in activities.
The co-ordination between schedule activities & fund transfers are difficult & lack of
petty cash also creates problems.

14) TVM Model Analysis:

Sustainable development is a critical need for a developing country like India. However,
existing models of sustainable development seem to be ineffective. In the rural context, this
could be due to lack of ownership by the community.
KGVK has developed the philosophy of Total Village Management (TVM) and implemented
it as an integrated and sustainable development model that encompasses natural resource
management, health, education and livelihoods to ensure empowerment and socio-economic
transformation at the grassroots. Overall, the process is designed to generate community
ownership by ensuring participative planning, implementation and auditing of the
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development agenda at the level of the village. It is based on application of successful

business practices in a phased manner to build capacity and generate returns in a timely and
effective manner.
In 2008, KGVK developed this integrated approach, called the Total Village Management
model (TVM). It is based on strong business principles adapted to the rural setting. It focuses
on eight key areas: natural resources management, education, renewable energy, livelihood,
women's empowerment, capacity building, resource mobilisation, infrastructure
development, and health, nutrition and sanitation. All TVM efforts have 90-day
implementation cycles, at the end of which impact is measured. Today, all KGVK projects
are based on the TVM model.
It works on eight pillars (of which I will go into more depth in other posts regarding some of
these) to alleviate poverty. These 8 pillars include:

Natural Resource Management

Health, Nutrition and Sanitation

Energy Inclusion

Livelihood and Market Linkages

Womens Empowerment

Capacity Building

Resource mobilisation and infrastructure development.

Though these expansions are well planned, there are two major obstacles:
1. Difficulty in obtaining credit by farmers for buying cattle, equipment, etc.
2. Difficulty in disbursing cash payments to farmers from whom KGVK purchases milk and
Agricultural Produce
The basic issue is that majority of the state is still financially excluded and does not have
access to financial services.
15) Primary Data Collection:
A) Dr. Arvind Sahay (Hierarchical Level: Change Maker):

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As we received information related to the 9 sub parameters through the Annual Reports of
KGVK i.e. 2013-14, 2012-13, 2011-13. We restricted our questionnaire to be open ended to
very few fields. This was a Telephonic Interview with prior approvals on questions through
mail. The Questionnaire & the translated summed up answers are as below:
1) Sir, you were also working in Corporate World in your initial days & then different social
sectors throughout your life & then joined KGVK in the year 2009. How do you think
KGVK is different from Corporate Sector & to that of other Social Organizations?
Ans: All social sectors are very similar to Corporate Sector in terms of operations. The
corporate sector has got Human Resources & the main challenge in case of Social Sector is to
find the proper Human Resources, you need to create them but what happens is those persons
choose you as a stepping stone to jump to the Corporate Sector.
KGVK has a got a holistic view & works in a Tribal sector which is different from my past
experiences & it has been nice working with KGVK since. Every organisation has its
different culture & the culture of KGVK indulges lot of culture of Corporates thus making it
different form other Social Organizations.
2) What are the main challenges you feel in terms of financial resources?
Ans: Containing Costs & Getting Donors for projects. In Case of govt. projects co-ordination
of scheduled activities & fund transfer is a big issue.
3) What are the activities performed by the Key Partners?
Ans; Basic function of our key partners is provide us with resources.
4) What is the motivation for your partners to select KGVK as implementation partner?
Ans: The reputation which KGVK has been able to build through its dedicated work for
empowering community to select its own future for the past 42 years.
5) What is the value do you deliver to your customers (here we are referring to the
community as throughout the document)?
Ans: Hope of looking forward to future of their own choosing.
6) What services are you providing?
Ans: Holistic Services through the TVM model.
7) What need of customers do these need satisfy?
Ans: Better Life, More Income, Productivity Enhancement & many more.

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8) What kind of customer relations have you established?

Ans: Participative & in some projects we have developed it to Personal Assitance.
9) Are these relationships affordable to you?
Ans: The relationships are costly but are important in terms of future relationships.
10) Who are your most important customers?
Ans: The community especially the tribal & women.
11) How do you reach customer & why do customer perceive you to be reliable?
Ans: The channel we follow is main part & ensures that our message reaches the customers 7
they buy our ideas, services & products.
B) Mr. Saurabh Kumar (Hierarchical Level: Project Change Maker)
We kept the same questionnaire for him with a very few modifications. The questionnaire &
translated summed up answers are as below:
1) You have been in Corporate Sector for past 9 years & what difference you find in the
working style in Social Sector?
Ans: I believe both are similar but the main challenge for us to bring corporate work culture
in social welfare sector 7 this can ultimately lead to development. After me joining to KGVK
since 12 months we have already started the same. The first step was creating an
accountability system & bringing Information System in to operations. Currently both are
going simultaneously but I believe by October 2015 we would go fully automatic.
2) What are the activities performed by the Key Partners?
Ans: I believe except providing us the resources the key activity they are doing is believing
us & keeping faith on us.
3) What is the motivation for your partners to select KGVK as implementation partner?
Ans: Values, Beliefs, Working Style & Success Rate
4) What is the value do you deliver to your customers (here we are referring to the
community as throughout the document)?
Ans: Better Life with increased income from different sources by giving them choices.
5) What services are you providing?
Ans: Holistic Service with 8 Pillar Model i.e. TVM model.
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6) What need of customers do these need satisfy?

Ans; Financial resources & Technical Support & guidance are the key needs of our
customers as per me.
7) What kind of customer relations have you established?
Ans: We dont enforce our views on them but listen to them. To listen to them you must have
a very close relationship with them so as to ensure they will share their views wit you.
8) Are these relationships affordable to you?
Ans: In monetary terms I would say Yes but it has been very costly as it has taken around 42
years of KGVK working in the area to ensure their participation.
9) Who are your most important customers?
Ans; All the vulnerable, underprivileged people of the society/community.
10) How do you reach customer & why do customer perceive you to be reliable?
Ans: It is the channel which differentiates others from us. Our channel consists of
community persons itself that too women of the society. I dont know about your region but
here women are the most active community of the society. If you want ot intervene they must
be your first target. This is what is allowing us to get faith of people.
11) What are the various challenges you feel are there for implementation of these kinds of
projects?
Ans: I believe every activity we perform is a challenge in itself & a great way of learning &
insights to be ued in the future cases.
C) Mr. Jageswar Mehto (Hierarchical Level: Field Change Maker)
He is a person who coordinates the work at the field level. Thus our questionnaire was
different for him as follows:
1) Why do you think people believe in KGVK?
Ans; One of the oldest organisation in the region & havent failed people from 42 years.
2) Why do you think people buy the ideas, services & products of KGVK?
Ans; They have got faith or believe upon KGVK as they have listening about the same from
their fathers even grandfathers in some of the cases.

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3) You mentioned in the same village where government failed for implementation of
IWMP but KGVK has spent 3.5 Crores & empowered community with 70% utilization of
fund would you like to share why did KGVK succeed in selling same ideas where the
Govt. failed?
Ans; It is our commitment to work & way of working which led to our success where even
the government failed.
4) What makes KGVK believe that people are empowered?
Ans: In telephone you wont believe come 7 see ask Somnath & Brijesh about their
experience. I believe it would answer your question.
5) Give some comments on the channel of distribution of Services.
Ans: Having community people at the end of the channel is what is our unique feature &
makes us successful.
D) Mrs. Rita Devi (Hierarchical Level: Rural Service Provider)
She is a person from the community itself 7 works for promotion of ideas & implementation
of same for KGVK on part time or contract basis. She is the channel distribution of Ideas in
Kuchu village where the Mr. Jageswar Mehto claims KGVK to be successful after
governments failure. The questionnaire asked to her as follows:
1) What makes people to believe in KGVK?
Ans: Because my father also believed in them & I have also seen them working.
2) Why do people buy the products of KGVK?
Ans: Past Experiences
3) What are the values do you receive from KGVK?
Ans: Ability to choose of my own.
16) Secondary Data Analysis
Secondary Data Annual Reports & Company Website

Business Model Canvas

Challenges faced in Every Parameter

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